Wondering about the definition of voucher auction? Keep reading to learn the meaning of voucher auction, see some examples, and get a better understanding of this travel glossary term!
What is a Voucher Auction?
A voucher auction is an airline term for when airline gate agents attempt to reduce the number of passengers on a particular flight by offering higher and higher compensation until they reach their target.
The main reason for holding a voucher auction is when an airline overbooks a flight (too many passengers).
More on Voucher Auctions
When a flight is oversold, gate agents may hold a voucher auction to get some passengers to rebook onto later flights in return for compensation.
During a voucher auction, gate agents start at a low voucher compensation value and move up, and they wait for hands to raise as they call out higher and higher dollar amounts.
The voucher is often a coupon for amounts off future flights, but may also be other compensation, such as frequent flier points. If customers accept to take a later flight, they may also get coupons or vouchers for meals and a room at a nearby hotel to spend their time until the next flight (if it’s the following day).
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